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The federal government is investing $10.4 million into two sustainable aviation fuel (SAF) projects in Queensland.
The Australian Renewable Energy Agency (ARENA) will provide $8 million to technology developer Licella to assess the viability of a biorefinery at a Bundaberg sugar mill, while Viva Energy has been awarded $2.4 million to demonstrate SAF use and storage at Brisbane Airport.
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The Bundaberg biorefinery, co-located with the Isis Central Sugar Mill, would use the mill’s agricultural residue feedstock, with the government estimating it could create 300 construction jobs and 100 ongoing operational roles.
In Brisbane, Viva will recondition a fuel tank at the Pinkenba Terminal for a commercial supply of blended SAF, with the resulting findings to be shared with other Australian airports to ready their infrastructure for domestic SAF.
“By making SAF available at Brisbane Airport, this project will support our airlines and play a key role in helping the Airport address its Scope Three emissions,” Gert-Jan de Graaff, chief executive of Brisbane Airport, said.
“Viva Energy and ARENA are helping Brisbane Airport take a leading role in integrating SAF into the future of air travel.”
The government estimates SAF could cut domestic aviation emissions by up to 80 per cent compared to conventional fossil fuels, Transport Minister Catherine King said.
“The size of our nation means that aviation is often the only option for Australians to get where they need to go,” she said.
“The development of a local sustainable aviation fuel industry is a necessity, but also a huge opportunity for job creation in the regions.”
According to Minister for Climate Change and Energy, Chris Bowen, Australia is in a “unique position” to develop a domestic SAF industry, as it has readily available biomass to convert to fuel, willing offtake interest, and liquid fuel expertise.
“This ARENA funding is another demonstration of our government’s commitment for a Future Made in Australia – using our natural resources to build industry, cut emissions from planes, and create real jobs right now,” Minister Bowen said.
“By making more fuel on Australian shores, from Australian renewable energy and feedstock, we can make our fuel supply stronger, cleaner and more secure.”
The 2023 Boeing/CSIRO SAF Roadmap also identified Australia as in a “prime position” to develop a domestic SAF industry.
According to Max Temminghoff, the roadmap’s author and senior manager at the CSIRO, Australia is in a good position to develop a domestic SAF industry but needs to address key challenges such as feedstock availability, supply chain issues, and international standards and regulations.
Toowoomba Wellcamp Airport owner Wagner announced last year it was partnering with Boeing to build a SAF plant in Brisbane, with construction to begin in 2026.
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